HARD-PRESSED RENTERS WON’T BE BETTER OFF UNDER GOVERNMENT STRATEGY

Hard-pressed renters will not be better off under the Government’s Strategy for the Rental Sector, according to Labour spokesperson on Housing, Planning and Local Government, Jan O’Sullivan TD.

Commenting on the plans unveiled by the Minister for Housing, Simon Coveney, Deputy O’Sullivan said:

“By choosing not to link rent increases to the Consumer Price Index of 0.5 per cent as of July this year, the Government has missed an opportunity to provide genuine relief to hard-pressed renters.

“Instead, they now face rent hikes of eight times that amount.

“Take for example, someone currently paying €1,500 in rent a month, who now faces spending an extra €4,500 of after tax income on rent increases over the next three years.

“That money could have been used to save for a house, or pay childcare costs and other bills.

“This is something the Labour Party pushed for in Government and is central to our Social and Affordable Housing Bill. And the all-party Oireachtas committee on housing and homelessness recommended that rent reviews should be linked to an index such as the CPI.

“But even that isn’t enough to persuade this Government and Fianna Fáil.

“What’s more, by only designating Dublin and Cork as so-called Rent Pressure Zones, the Government has shown little regard for renters in Limerick, or Galway or even Mayo.

“The most recent figures from Daft.ie for example showed rents soared in Limerick City by 13.2 per cent in the third quarter, with a 10.9 per cent increase in Galway City.

“In reality, what the Government has announced today does not provide the certainty renters so urgently need.”